Substantive Participation in Rural Concentrated Inhabitation Reform ——An Analysis Based on Contract Theory
WANG Lei1, SHEN Dan1, LI Zi-ming2
1.Institute for the Development of Central China, Wuhan University, Wuhan 430072, China; 2.Department of Urban and Regional Planning, University of Florida, Gainsville, Florida, 32611-3225, USA
Abstract：
By modeling the interactions between local governments and rural households under different constraints, this paper demonstrates the behaviors of rural households with and without their participations and compares their corresponding welfare conditions. We find that Pareto optimality of probability of participation exists, at which level both the interest of rural households and welfare condition of social reform reach maximum. In the meantime, the greater probability of participation of rural households in the reform, the more benefit can be reached. Otherwise benefit decreases, even will be below the level without participation.
WANG Lei, SHEN Dan, LI Zi-ming.Substantive Participation in Rural Concentrated Inhabitation Reform ——An Analysis Based on Contract Theory[J] Economic Survey, 2015,V32(1): 25-30
2015 
